Finance chiefs from the G-7 notched-up their rhetoric on the dollar, but provided little substantial evidence they'll take actions -- monetary or fiscal -- to stem the dollar's slide, Bloomberg News reported Sunday night.
"We continue to monitor exchange markets closely, and cooperate as appropriate,'' the G-7 said, Bloomberg News reported, with U.S. Treasury Secretary Henry Paulson adding that the G-7 statement on currencies "reflects market developments and changes in the markets." The G-7 then pledged to implement further monetary and fiscal policies "as appropriate,'' without providing specific details.
No substantive action on dollar
Economist Peter Dawson told BloggingStocks Monday the G-7 statement by the United States, the United Kingdom, Germany, Japan, France, Italy, and Canada amounted to a statement against currency rate volatility, not a substantive effort to bolster the dollar. He added that G-7 representatives, in his interpretation, appeared more concerned about maintaining financial market liquidity due to the ongoing credit slump, than about the dollar's value.

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Having spent a lot of time here writing about oil prices and the reasons behind why we have seen some pretty impressive ups and downs over the last year, perhaps it is time to take a closer look at oil. Mainly, just how important is the oil trade to the American economy?








